Dutch pension fund APG has completed its deal with TH Real Estate to buy a 75% stake in the St James Centre in Edinburgh, unlocking one of the UK’s most long-awaited regeneration projects.
An announcement is expected later today.
When complete, the development will include 850,000 sq ft of shops, a 210-bedroom W Hotel, 250 flats, 20 restaurants and a 30-screen cinema.
From Friday: APG unlocks £1bn St James Centre
The Henderson UK Shopping Fund, managed by TH Real Estate, will retain the remaining ownership and manage the development.
Myles White, director of retail, TH Real Estate, said: “Both APG, and ourselves, on behalf of our UK Shopping Centre Fund investors, look forward to a long term partnership on this investment which we believe will set a new benchmark for the future of retail and leisure schemes, both in the UK, and beyond.”
Robert-Jan Foortse, head of European property investments at APG, said: “The project fits very well in our portfolio with stakes in shopping centres like Westfield Stratford City in London and CAP3000 in Nice. Edinburgh St James also fits in seamlessly with our strategy to increase our focus on ‘develop to core’ projects.
“In TH Real Estate we have a long time trusted partner and we look forward to working with them in the completion of the project and its management, once it has been completed.”
Keith Brown, cabinet secretary for economy, jobs and fair work, said: “The Scottish Government warmly welcomes this major investment in Edinburgh and Scotland, which will have significant positive impact on construction activity, jobs, and the economy
Edinburgh’s economy convener, Councillor Gavin Barrie, said: “The new St James will transform the east end of Edinburgh’s Princes Street, providing much needed premium retail space and leisure facilities, new homes and a world class 5 star hotel in the heart of the city – creating thousands of jobs in the process and adding millions to the Scottish economy each year.”
Cushman & Wakefield acted on behalf of TH Real Estate; Savills advised APG.
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